Question

The

c.i on a certain principal in 2nd year is rs.420 and that in 3rd year is rs.462. what is the rate of interest?

Answer 1

dont know the answer

Answer 2

Formula:

We know that the formula for Compound interest is C.I = P * ( 1+R/100)^n

(calculating annually)

where, P is Principal amount

R is rate of interest

n is no. of years

Given details:

Final amount is Rs.420 after 2 years.

Final amount is Rs.462 after 3 years.

Solution:

P(1+R/100)^2 = 420… (1)  

P(1+R/100)^3 = 462…(2)

When equation (2) is divided by equation (1),

(1+R/100) = 462/ 420

R/100 = (462/420) - 1

R = 0.1 * 100

R = 10 %

Answer: Rate of interest is 10%